A Major Milestone For India’s Pay-TV Industry: Industry Revenues To Top US$10 Billion In 2017

21 September 2017

BACK

Indian pay-TV revenue to expand by 10.6% this year, according to Asia Pacific Pay-TV Distribution 2017, a new report published today by leading industry analysts Media Partners Asia

(MUMBAI, SEPTEMBER 21, 2017) Pay-TV industry revenues in India are on track to pass the US$10 billion mark this year, according to the latest forecasts from leading industry analysts Media Partners Asia (MPA), published in a new report Asia Pacific Pay-TV Distribution 2017. Industry revenues are set to expand by 10.6% this year, picking up the pace again after a 6.3% growth rate in 2016. Cable, the dominant platform in Indian pay-TV with 59% of subscription revenue and 67% of subscribers, will expand by 7.0% this year to exceed US$3.6 billion, according to MPA forecasts. Revenues for DTH satellite meanwhile will grow by 13.6% to reach ~US$2.6 billion. Pay-TV advertising, meanwhile, is set to contribute just over US$3.8 billion.

Mihir Shah, vice president of India for Media Partners Asia, said: “India’s pay-TV market has been shaken and stirred by macro-economic developments, from demonetization to tax reform, as well as structural shifts in the marketplace, notably TV ratings for rural areas as well as proposals for a new tariff regime from the regulator. That said, the market continues to offer scale and opportunities for monetization. India’s pay-TV industry will add 5 million net new customers this year, lifting the base to 155 million homes. By 2022, this base will have grown to 173 million homes.

“Although average revenue per user or ARPU is relatively low at US$3.4, this will rise to US$3.8 by 2022,” Shah continued. “Digitalization offers a major opportunity, not only to incumbent cable and DTH operators, but also to new platforms such as DD Freedish. By the end of this year, there will still be 44 million analog cable homes in India that need to be upgraded to digital networks. We expect 77% of India’s pay-TV base to be digitalized by 2022. On-ground enforcement of the government’s cable digitalization program, together with more foreign direct investment as well as healthy primary and secondary capital markets, will also help drive digital subscriber growth.”

India’s pay-TV market is poised to be the fastest growing in Asia Pacific over the next five years, as revenues increase by a 7.1% annual growth rate between 2017 and 2022, according to MPA forecasts. MPA analysts project pay-TV industry revenues in India to pass the US$14 billion mark in 2022. Revenue from pay-TV advertising will grow by a 10.5% annual growth rate over this time-frame, increasing its share of the pay-TV pie from 38% in 2017 to 45% in 2022. Pay-TV subscription revenue will grow by a 4.8% annual growth rate, with its share of the pie set to fall from 62% in 2017 to 55% in 2022.

India is the second largest pay-TV market in Asia-Pacific, after China, which is expected to generate US$21.0 billion in revenue this year, according to MPA. Japan, a US$6.5 billion pay-TV market, is third. Korea sits in fourth place, at US$5.5 billion, while Australia lies fifth at US$2.8 billion.

About Asia Pacific Pay-TV Distribution

Asia Pacific Pay-TV Distriubtion is an annual report published by Media Partners Asia (MPA) covering commercial distribution of pay-TV and broadband in 17 Asia Pacific markets, including analysis of 80 pay-TV and broadband operators with KPIs and P&L. The report provides historical data and five-year forecasts for subs, ARPU and revenue across pay-TV platforms, including on-demand, TV Everywhere, HD and DVR services, as well as for subscription and ad revenue for pay channels. The report also contains a detailed breakdown of channel packaging from pay-TV and broadband operators. The 17 markets covered by the report are: Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Myanmar, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam.

About Media Partners Asia (MPA)

As a leading independent consulting and research provider, Media Partners Asia offers a range of customized services to help drive business development, strategy & planning, M&A, new products & services and research.

Based in Hong Kong, Singapore and India, our teams have local depth and expertise across 18 key markets in Asia Pacific and key international territories. We offer in-depth research reports across key industry sectors, customized consulting services, industry events to spread knowledge and unlock partnerships, and publications that provide insights into driving business.